How to Create a Budget
Create a budget! It might solve all the world’s problems! Well, maybe not, but you’ll at least be able to pay off your wretched student loans. It is definitely time and nothing is standing in my way! My goals are written down. They are specific, measureable with an exact payoff date. The automatic payments of 2 separate amounts totaling $2400 that will go towards my student loans are set! The budget is done because becoming debt-free won’t work without a monthly budget! I am ruthless, ready and wildly passionate while getting crazy mad at the same time! It’s time! I’m listening to Dave Ramsey compulsively. I have now also read his book, The Total Money Makeover and listened to the audio version. I am laser focused and listening to millions of families go to Dave’s studio for their debt-free scream. It gives me hope it can be done! Now, on to the budget!
CREATE A BUDGET.
I had to figure out where my money was going. First, I had to look at my bank statements and figure out when and what I swipe for. Also, I looked for money that was automatically being taken out of my account. Then, I reviewed what I absolutely had to pay for and what needed to be eliminated from my budget.
Using Dave’s app, EveryDollar is shaking things up. I make a plan and budget before the month starts. I include monthly utilities, mortgage, entertainment, gas, personal care items, a miscellaneous category, etc. As I buy things, I add them to the spent category right after I make the purchase. The remaining balance tab tells me how much money is left at the end of the month to reallocate to my debt. The EveryDollar app is genius really. I am not an excel chick, but I am an app on-the-go kinda chick. Budgeting has been around all this time. Now, I know exactly where all my money goes rather than wondering where it went at tax time.
SWITCH TO CASH OR DEBIT CARD ONLY.
If the money is in my bank account, why on earth do I need to charge purchases on my credit card? It’s hard to budget monthly when I charge like I eat chocolate! I pay the credit card off the month after I actually spend the money.
For example, in March, when I started this journey I had a car mishap. My car cost me $1147. I swiped my credit card for the points instead of swiping my debit card. I fretted over it the rest of March and all of April since I still had to pay for it. It took me days just recently to realize $500 was allotted to the car mishap. This is why the EveryDollar app wasn’t accurate with the remaining funds. I am still not being fully accountable for every single dollar I earn. I am not giving every dollar a name and I still need to tighten my budget even more to reallocate funds to my debt.
FINE TUNE YOUR EXISTING EXPENSES.
What can you get rid of or can you skip a few months? You need to find more money in order to apply more to your debt?
I cut my cable budget and signed up for Hulu and Netflix. My sister wasn’t thrilled, but life is short and I have goals to accomplish! So, I’m saving about $75 a month and about $900 a year. You can’t tell me you couldn’t find something interesting to put that money towards instead. My fav is vacation of course because there is a world to see, people to meet, cultures to explore and tasty food to eat!
I reduced my monthly grocery budget to $40 a week or $160 a month for a household of 2. I shop at Aldi’s where I can still have my organic strawberries, blueberries, grapes, and apples and even meats without breaking the bank.
I cancelled any subscriptions I hadn’t used in the last 6 months. I also called my internet and phone service and asked about available data and internet speed promotions. In addition to the above, you also can compare quotes for your car and homeowner’s insurance as well. Doing these activities will allow you to tighten up your budget.
When you decide to create a budget and commit to the magic, it is just the beginning! What are you doing to start changing your financial future? Start today, START NOW! It’s time to get intentional!
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